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This article first appeared on GuruFocus.
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Total Sales: $54.6 million, up from $53.7 million in Q1 of last year.
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Net Sales Increase (Excluding Healthcare): 6.8% year-over-year.
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PMT Sales Increase: 2.8% overall; 10.5% excluding healthcare.
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Canvas Sales Increase: 8.3% year-over-year.
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GES Sales Decrease: 10.2% year-over-year, due to non-recurrence of a large EV locomotive order.
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Consolidated Gross Margin: 31.0% of net sales, up from 30.6% in the prior year.
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Operating Expenses: Improved to 29.2% of net sales from 30.0% in the prior year.
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Operating Income: $1.0 million, up from $0.3 million in the prior year.
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Net Income: $1.9 million, up from $0.6 million in the prior year.
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Earnings Per Share (Diluted): $0.13, up from $0.04 in the prior year.
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EBITDA: $3.3 million, up from $1.7 million in the prior year.
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Cash and Cash Equivalents: $35.7 million at the end of the quarter.
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Cash Flow from Operations: $1.4 million, up from $0.4 million in the prior year.
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Capital Expenditures: $1.0 million, compared to $0.9 million in the prior year.
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Quarterly Cash Dividend: $0.06 per common share declared.
Release Date: October 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Richardson Electronics Ltd (NASDAQ:RELL) reported a 1.6% increase in consolidated net sales for Q1 FY26, reaching $54.6 million compared to $53.7 million in the prior year.
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The Power and Microwave Technologies (PMT) segment, excluding healthcare, saw a 10.5% increase in sales, driven by higher demand from semiconductor wafer fab customers and legacy power grid product lines.
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The Canvas segment experienced an 8.3% increase in sales, reflecting improved market conditions in Europe.
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The company generated positive operating cash flow for the sixth consecutive quarter, maintaining a strong cash position of $35.7 million.
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Richardson Electronics Ltd (NASDAQ:RELL) reported a 40 basis point increase in consolidated gross margin, primarily due to improvements in PMT and GES segments.
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The Green Energy Solutions (GES) segment experienced a 10.2% decrease in sales, primarily due to the non-recurrence of a large EV locomotive order from the prior year's first quarter.
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The gross margin for the Canvas segment decreased to 30.9% from 34.3% in the first quarter of fiscal year 2025, mainly due to product mix and higher inbound freight costs.
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The healthcare business, now included in PMT, is expected to have lower comparable sales throughout most of FY26 due to the sale of the healthcare parts business in January 2025.
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Operating expenses as a percentage of net sales improved slightly but remain a concern, with a focus on managing SG&A levels.
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The company faces challenges with its largest supplier exiting the RF tube business, requiring strategic decisions on manufacturing and inventory management.
